Horton Company Uses Four Special Journals, (Cash Receipts, Cash Payments

question 5

Essay

Horton Company uses four special journals, (cash receipts, cash payments, sales, and purchases journal) in addition to a general journal. On November 1, 2018, the control accounts in the general ledger had the following balances: Cash $12,000, Accounts Receivable $200,000 and Accounts Payable $42,000. Selected information on the final line of the special journals for the month of November is presented below: Additional Data:
The Sales Journal total was $41,000. A customer returned merchandise for credit for $360 and Norton Company returned store supplies to a supplier for credit for $400.
Instructions
(a) Determine the missing amounts in the special journals.
(b) Determine the balances in the general ledger accounts (Cash, Accounts Receivable, and Accounts Payable) at the end of November.

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Definitions:

Underapplied Manufacturing Overhead

Refers to the situation where the actual manufacturing overhead costs are greater than the overhead costs applied to production.

Allocation

The process of distributing resources or costs among various departments, products, or activities based on specific criteria or formulas.

Journal Entry

A record in accounting that represents a transaction, showing the accounts affected and the amounts debited and credited.

Overapplied Balance

A situation in cost accounting where the amount of overhead applied to products or services exceeds the actual overhead costs incurred.